Accidents, Insurance Keep Saia Profit from Moving Higher
July 30, 2014
Less-than-truckload carrier Saia reported a slight increase in profit during the second quarter of the year as revenue also moved higher.
Net income totaled $13.6 million compared to $13.5 million a year earlier, while revenue increased to $330.4 million from $292.6, about a 13% hike. Diluted earnings per share were 53 cents compared to 54 cents during the same time frame for the Georgia-based fleet.
LTL tonnage increased 6.9% as shipments were up 5.5% with a 1.4% increase in weight per shipment, according to the company, while claims and insurance expense was $8.3 million higher than the second quarter last year "due primarily to accident severity."
"The higher accident severity in the second quarter masked the strong tonnage growth and favorable pricing trends that we achieved. said Saia President and Chief Executive Officer, Rick O'Dell. "The 12.9% second quarter revenue increase was the highest that we have achieved at Saia in seven years. The top line growth driven by last year's investment in sales and marketing resources coupled with effective yield management provided the opportunity to overcome a capacity constrained environment which significantly increased costs for driver recruiting, training and purchased transportation”
Complete numbers are on the Saia website.